Thu, 07 Jul 2022

Iranian currency drops to record low due to sanctions

Robert Besser
16 Jun 2022, 01:09 GMT+10

TEHRAN, Iran: As talks to revive Iran's nuclear deal with the world's powers remained deadlocked this week, the Iranian rial dropped to its lowest-ever value.

Traders in Tehran exchanged the Iranian currency at 332,000 to the U.S. dollar, up from 327,500 a day earlier, a more than 4.4 percent change compared to June 1 when it traded at 318,000 to the dollar.

When Tehran's 2015 nuclear deal was in force, Iran's currency was trading at 32,000 rials to the dollar.

The Iranian economy is struggling due to the U.S. pullout from the 2015 nuclear deal between Iran and world powers that restored sanctions on the country's oil and banking sectors.

Talks to renew the agreement held in Vienna have been deadlocked for months.

This week, dozens of shop owners took to the streets in protest over the worsening economic situation, with many closing their businesses following a recent rise in business taxes. Police were present, but did not intervene.

State TV also reported that police arrested 31 currency and gold traders accused of creating "false demand" in the market.

Venezuelan leader Nicolas Maduro visited Iran over the weekend. Both nations are under U.S. sanctions.

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